WASHINGTON — The Department of Housing and Urban Development has issued final disclosures for mortgage lenders to provide active duty homeowners in default.
Under the Servicemembers Civil Relief Act, debt incurred by a service member or jointly with a spouse prior to entering service will not carry an interest rate above 6% during the period of service; a court may stop legal action or adjust the debt against real estate filed during or up to 90 days after service; and the sale, foreclosure, or seizure of real estate shall not be valid if it occurs during, or within 90 days after the service member's military service unless the creditor has obtained a court order. The disclosure also advises that the SCRA provides other non-mortgage protections as well.
To receive SCRA relief, a service member or spouse, or both, must provide a written request to the lender, along with a copy of the military orders.
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The disclosure form outlines who is covered under the SCRA:
oActive duty members of the Army, Navy, Air Force, Marine Corps, Coast Guard, and active service National Guard;
oActive service members of the commissioned corps of the National Oceanic and Atmospheric Administration;
oActive service members of the commissioned corps of the Public Health Service;
oUnited States citizens serving with the armed forces of a nation with which the United States is allied in the prosecution of a war or military action; and
oTheir spouses.
Information about the SCRA is available at http://www.militaryonesource.com or by phone at:
oFrom the United States: 1-800-342-9647 -6477; or
oFrom outside the United States (with applicable access code): 800-3429-6477 International Collect (through long distance operator): 1-484-530-5908.
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